Showing 1 - 10 of 100
The costs of vertical integration are analyzed within a game-theoretic signaling model. It is shown that a company when being vertically integrated with a supplier may well decide to buy certain components from this supplier even at a lower quality than that offered by external sources. When the...
Persistent link: https://www.econbiz.de/10010261581
One issue the literature neglects is how outsourcing stimulates trade (imports, exports and foreign direct investment …
Persistent link: https://www.econbiz.de/10010262075
This paper offers a rationale for limiting the delegation of (real) authority, which neither relies on insurance arguments nor depends on ownership structure. We analyse a repeated hidden action model in which the actions of a risk neutral agent determine his future outside option. Consequently,...
Persistent link: https://www.econbiz.de/10010262786
international outsourcing. It is the first detailed study to address the effects of outsourcing on labour markets in the UK. In a … recent paper, Feenstra and Hanson (1996) estimate the effect of international outsourcing on wage inequality in the US. This … paper extends the FH approach by using more detailed definitions of outsourcing and skill. The analysis applies to UK …
Persistent link: https://www.econbiz.de/10010265562
This paper studies the impact of outsourcing on individual wages. In contrast to the standard approach in the … literature, we focus on domestic outsourcing as well as foreign outsourcing. By using a simple theoretical model, we argue that …, if outsourcing is associated with specialization gains arising from an increase in the division of labor, domestic …
Persistent link: https://www.econbiz.de/10010267474
This paper analyzes the issues of immigration and outsourcing in a general-equilibrium model of international factor … mobility. In our model, legal immigration is controlled through a quota, while outsourcing is determined both by the firms (in … response to market conditions) and through policy-imposed barriers. A loosening of the immigration quota reduces outsourcing …
Persistent link: https://www.econbiz.de/10010267646
With outsourcing comes a perceived tension between the competitive pressures faced by domestic firms and the effect … that outsourcing has on domestic workers. To address this tension, we present a general-equilibrium model with an … oligopolistic export sector and a competitive import-competing sector. When there is a minimum wage, an outsourcing tax might be …
Persistent link: https://www.econbiz.de/10010267667
outsourcing activities, the increased flow of direct foreign investment and its heterogeneous regional distribution, the increased …
Persistent link: https://www.econbiz.de/10010268174
Implementing performance pay requires that workers' output be measured. When measurement costs differ among firms, those with a measurement cost advantage choose to implement performance pay. They attract the best workers, and both the level and variability of compensation are higher at these...
Persistent link: https://www.econbiz.de/10010268459
influence the demand for outsourcing. We show that outsourcing becomes more beneficial to the firm when technology is changing … expensive than outsourcing. The model therefore provides an explanation for the recent increases in outsourcing that have taken … model, namely, that all other things equal, the demand for outsourcing increases with the probability of technological …
Persistent link: https://www.econbiz.de/10010268654